Mumbai, Aug 24: The upcoming week is set to be crucial for Indian stock markets, influenced by global cues, US interest rate signals, industrial output data, and foreign investment trends.
At the Jackson Hole symposium, US Federal Reserve Chairman Jerome Powell hinted at a potential interest rate cut, triggering a rally in US markets. Analysts believe this optimism could spill over into Indian equities when markets open on Monday.
A US rate cut typically weakens the dollar and bond yields, making emerging markets like India more attractive for foreign institutional investors (FIIs).
Last week, FIIs were net sellers, offloading shares worth RS 1,559.51 crore, while domestic institutional investors (DIIs) were net buyers, investing RS 10,388.23 crore.
India’s upcoming Index of Industrial Production (IIP) data is also expected to influence sentiment, offering insights into the health of the industrial sector.
Indian markets ended the previous week on a strong note, with the Nifty rising 0.97% to 24,870.10 and the Sensex gaining 0.88% to 81,306.85.
The rally was broad-based, with the Nifty Midcap 100 up 1.99% and Nifty Smallcap 100 rising 2.12%.
Sectorally, Nifty Auto led with a 5.02% gain, followed by realty (3.45%), consumption (3.01%), FMCG (1.98%), IT (1.74%), and metal (1.73%).
According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, the rally was driven by S&P Global Ratings upgrading India’s outlook, which boosted investor confidence.
Additionally, Prime Minister Narendra Modi’s announcement of GST reforms before Diwali further lifted market sentiment. (IANS)
